GEO Investing

China Fruits Corp (CHFR) ($0.14) is a distributor and producer of fresh tangerine and other fresh fruits in the People’s Republic of China.  We are Long CHFR, but know this is very  speculative bet.

On August 19, 2014 we added  CHFR to our watchlist due to significant increases in revenues and net income in its Q2 2014 results. We have decided to make a purely speculative bullish bet.

  • The company reported EPS of $0.01 for its Q2 2014.
  • Sales increased 197%:
  • Pumpers/Momentum players may annualize Q2 EPS to $.04 and  apply  a  P/E of 10 to  25 , equating to a share price of  $0.40 to $1.00.
  • It is also worth noting that the company just started becoming more active on the investor relations front. For example, after a long  hiatus of  issuing no press releases , press  release   flow   resumed in  March 2014.
  • Launched an  e-commerce  platform.

We caution readers that:

  • we have performed no due diligence on CHFR, beyond reading its SEC filings.
  • we presume CHFR will have to raise capital  since its  working capital  is negative.
  • the company has a history of reporting minor profits in the past, then resuming quarterly losses.

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